In 1974 and 1975, JP led satyagrahas against the corrupt government of Indira Gandhi and called for a 'Total Revolution' in the countryside. In response, Indira declared the two-year State of Emergency under which her own power was consolidated and JP was jailed. At that time, George Fernandes, chairman of the Socialist Party of India, who had faced prosecution for conspiracy against the government of Prime Minister Indira Gandhi, sought to obtain funding from the U.S. Central Intelligence Agency and the French government in order to organize underground sabotage activities. After an initial request to seek funding from the French government was turned down, U.S. diplomatic cables showed that he was "prepared to accept money from the CIA".[1]

After the Emergency, the Socialist Party joined with a number of other groups to form the Bharatiya Lok Dal, which fused in 1977 into Janata Party as an omnibus opposition to Congress Party rule.